The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-08-17
THE STORY OF A BIG STEAL
How Richard Seaman Scott Robbed
New York Bank of 100000 in Cash,
And How His Brother-in-Law. John r Dunn,
Secured $4,000 of the Sum-Full His
tory of an Enormous Defalcation.

New YORK, Aug. 16 Richard Seaman Scott
who absconded with $3.50. 900 that belonged to
the Manhattan Bank of which he was an en-
employe, in 1885, and about whose disappear
Ance and whereabouts there was such profound
mystery, has made confession before Consul
general Waller at London. For a time there
were all manner Of rumors about his location,
out the tory at last was dropped. People who
were directly interested in the were more
active. and have long since known of his move
ments suit has just been instituted in the
Supreme Court which discloses not only
SCOTS action but the fact that
he was not alone in this stu
pendous defalcation. The suit is against
John R. Dunn, SCOTS colleague. for the recov-
cry OF $40, 900. The documents included in this
embrace an affidavit by the defaulter,
which is a statement of the history of the case,
but it is, in truth, confession of his theft
Scott according TO the complaint, for
twenty years a trusted employe of the Manhat-
Jan Bank, to June l, 1885. In the latter part of
his service ne was the paying teller Of the bank,
which is located at No. 40 Wall street Most of
the time he had in his custody daily over
million dollars. On June l. 1885. he absconded
with $160, 900, which he never returned The
public has never heard from him since that time
until to-day, when this suit was made known
He is row in London, where he has been since
September. 1885 1t now is shown that John
R. Dunn is a bigger rascal than Scott. and was
partly the cause of the latter forgetting his
duty. On Monday. Stern & Myers, counsel
for the bank, obtained order from Judge
Donohue for the arrest of Dunn in the suit
against him. At o'clock in the afternoon of
that day Dunn arrested by the officers of
the sheriff. at his stock-brokerage Office, No.
Sc New street Dunn, for many years,
a praoticing lawyer in this city. and at
one time had desk in the Office of
ex-Judges w. and S. F. Fullerton. In the last
few years he has been in the brokerage business
In the complaint it is charged that Dunn got
the money out of SCOTS hands; that he the
guilty party. and that, he controlled and gov
erned Scott, induced him to steal the money.
The principal foundation for the suit is in aft
davits by relatives Of the embezzler and the
principal one of these is by Scott himself. It is
voluminous and was drawn M in the presence of
and acknowledged by United States Consul
general Waller, at London, on June IA. In it
Scott states that at various times
prior to June /, 1885, he distracted
sums of money from the safe which
speculation. About this time there was a change
Hays, who had been the treasurer of the Stock
Exchange having succeeded VIM. Henry Smith
Ms president of the bank. Scott feared that this
change might cause an investigation of the
banks affairs. John r. Dunn, a cousin of SCOTS
wife, was practicing law then. and Scott
fastened to him for advice. Dunn asked him
how much money within his reach. I
Scott replied that there was over a million
dollars in bis charge Dunn, addressing Scott
said: MY advice to you is to take million
dollars 1t will be enough to cripple the bank
and will enable you to go to Canada. If you
take a small amount, people will laugh at you,
but IL you take large amount people will say
you are smart and you will compel the bank to
compromise 4
Then Dunn asked him if he had altered the |
books, saying that if he had done SO ne could be
held for forgery and extradited from Canada. |
Scott. however. said that he had done Dunn |
then said he would look the question and let |
him that the decisions in the
books were in conformity with his advice.
Dunn told him thai he had had experience |
in the Office of Judge Fullerton. and that Scott
need have no fear, as he DUNN was too smart |
TO be caught or to permit any body to get ahead |
of him. He advised Scott to get old suit of |
clothing, shave off his mustache, travel second |
class TO Canada. disguise himself as much pos
sible and do AZ little talking as possible He adj |
vised Scott not to write to either himself any |
friends in New York in the common wav, be- |
cause detectives often caught people by watching |
their CORRESPONDENCE. He also advised him to
"
New York possofice. All letters to friends were |
to be addressed and placed in an envelope bear
ing the above address
When Scott went to the bank the next day ha |
took $500, 900 in gold and silver certificates of |
the denomination OF ZOO, 81. 600 and $500, and
placed theL- in package which he concealed |
about his person. He met Dunn at Central Park
and had talk. Dunn asked il he had any |
friends w.t.. whom TO leave the money, telling
him that under the international treaties If he
carried any stolen money into Canada he could |
be extradited Scott said he had no one with
Tnom to lea Leave it ., Then sal. said
for cousin Lizzie Gscotts wife, that would do
for you what would do for other person.
take charge of the package. the contents of
which need not know, and take care of it. sub
ject to your order at all times. He explained
that il he'd took the money, knowing it to be-
long to the bank; it would make him Liable for
felony. This was on Friday. They agreed to
meet on Monday. Scott next day replaced the
$500, 900 in the bank, determining to make
effort to borrow enough money 10 make up
president Of the Farmers Loan and Trust Com
pany, who is his brother-inaw, the follow
Ing day Searles was iii; Scott told him that he
needed $4,000 but did not say for what pur-
pose Searles was unable to make the loan.
That same day, after Scott had left. Searles
wrote him letter telling him that if
he had better see Mr.. Auchincloss,
ore OF the directors. Scott did not take
this advice because the letter did not arrive
til he had left the country. Finding it impossi-
BILE to get the necessary money before going to
the bank on Monday, he got disguise He took
$3.50 000 he put it in two packages. one of $l40,-
900 and the other of $40. 900. He went TO Gen.
trail Park and met Dunn They walked to a Sc
cluded spot and Scott pulled out the
$4,000 and said: There is the money"
Dunn looked around, that he unob-
served. and put it in his inside pocket. Scott
said: Dunn, shall have to leave tonight"
They shook hands and parted Scott went to
the Grand Union Hotel, assumed his disguise,
and took the evening train for Montreal He
arrived next morning.
He did not stop in Canada long, visiting only
secluded points He correspondent with Dunn
under various aliases. Dunn's letters con-
visited principally of newspaper clippings Of the
defalcation. He also sent Scott money. Scott
took passage for Europe in September 1885.
He has been in London ever since his wife